Farmers stopped writing new policies in February. It notified the state this week that it's exiting altogether. The insurer joins a long list of others, big and small, who've bailed on Florida.

Liberty Mutual: Our pick for discounts

• Liberty Mutual: Our pick for discounts.
• Allstate: Our pick for extended coverage.
• Progressive: Our pick for bundling.
• Amica: Our pick for dividends.
• State Farm: Our pick for new homeowners.
• Chubb: Our pick for high-value homes.
• Security First: Our pick for hurricane protection.

Florida doesn't require homeowners insurance by law, but if you finance your home, your lender may require you to have a homeowners insurance policy in place. Your policy's coverages are designed to safeguard your property and assets.

Homeowners insurance policies generally cover destruction and damage to a residence's interior and exterior, the loss or theft of possessions, and personal liability for harm to others. Three basic levels of coverage exist: actual cash value, replacement cost, and extended replacement cost/value.

Homeowners' insurance is a specific type of property insurance. Homeowners' insurance covers damage or loss by theft and against perils which can include fire, and storm damage. It also may insure the owner for accidental injury or death for which the owner may be legally responsible.

How much does homeowners insurance cost in Florida? The average cost of homeowners insurance in Florida is $2,385 per year, or about $199 per month.

Like most common-law concepts, it has taken many individual cases and many decades - in some cases, centuries - to develop a settled view of the necessary elements for a valid insurance policy. These elements are a definable risk, a fortuitous event, an insurable interest, risk shifting, and risk distribution.

Types of life insurance explained. There are two primary categories of life insurance: term and permanent. Term life insurance lasts for a set timeframe (usually 10 to 30 years), making it a more affordable option, while permanent life insurance lasts your entire lifetime.

How Much Homeowners Insurance Is on a $150,000 House by State

Homeowners' insurance covers damage or loss by theft and against perils which can include fire, and storm damage. It also may insure the owner for accidental injury or death for which the owner may be legally responsible. Mortgage lenders usually require homeowners' insurance as part of the mortgage terms.

There are four basic parts to an insurance contract:

• Declaration Page.
• Insuring Agreement.
• Exclusions.
• Conditions.

Functions of Insurance They ensure the protection of the family. They are risk-sharing policies. They prevent the damages that can come from loss. It provides capital.